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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33717
Experience:  15 years real estate, Realtor. Landlord 26 years
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In the state of TN how can a seller legally get out of

Customer Question

In the state of TN how can a seller legally get out of selling of the home they were going to purchase is taking too long to close? additionally no where to stay 'in between closings'
Submitted: 28 days ago.
Category: Real Estate Law
Expert:  Barrister replied 28 days ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question.

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Was the sale of the first home contingent on the purchase of the second home going through in the contract?

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thanks

Barrister

Customer: replied 28 days ago.
thank you so much! :) for your response.. here is the issue... in detail.. and again, I truly Thank you for your help :).....We have built and sold homes for years... my dad and uncle.... his brother... dad passed away, my uncle and i built a home on my land in the subdivision we own, and built a 2600 sqft home w / an in law suite for mom to live.... we built too much house.. so we decided to sell... listed it for nearly 6 mos had two contracts that fell through and at the 13th hour RIGHT after we had gone from construction loan to perm, had this offer from this buyer... having sold for years by owner, we were good - or we thought selling w/ no rep... but closing date had gotten moved from Oct. 14 ( original contract date 9/6.2016) to oct 18 then they asked for Oct 28, I said if we are going to wait to 28, then lets wait til our new townhome ( downsizing is and was the point in selling,,,, getting equity out of the 2600 sq. ft 'new home' we JUST built ....) is ready which WAS supposed to be ready 15th... of NOV..... so we agreed to move closing to 15th.. HERE ARE THE issues.... Buyer is STILL not ready to close.. no clear to close yet from lender and lender says we "MAY" have it by Thursday..... we also found out the 2600 Sq. ft home appraised for 275K and we are accepting offer of 250k w/ 3K to closing costs and 2.5% to their buyers agent..... so they are represented and we are not :./ of course.... :(......... now we found out our new townhome ( which we have already added some things for mom to live downstairs... full bath, additional plumbing. kitchenette..... screened porch... barely appraised for asking price and agreed contract price of 174,900 ... builder has realtor of course, and she has bullied us the whole time...from the very beginning... she said if we get a buyers agent, price would be 179,900...... so we agreed not to get agent, for 174,900 w/ them paying 1500 towards closing... plumbing was being stubbed in so mom and the builder decided ( and DID NOT put this in writing )to go ahead before sheetrock phase and add her changes.... mom agreed to pay 1000 out of pocket to start this process... again, w/ no written agreement :/ and they say this is what casued ANOTHER delay in closing ( moving from Oct 17 to Nov 15 )..... knowing we would have to stay in h otel etc.. offering no provisions etc..... hence the asking to extend our buyers closing to Nov 15.... NOW the builder says 'bc his siding sub quit' ( which our siding is complete and no work has been donw on the house since Mon the 31st still lacks flooring... final plumbing toilets sinks etc... screened porch, fans, electric and more.. knwoing lender ask for full clear to close w/ inspections by this wed the 9th... she says now they need til at least the end of the month to complete the house... this is all getting TOO complicated... our things are sitting in our yard in two expensive pods, costing us rent.as we already paid movers to move us so we'd be out by 17th and closing on both houses the 18th supposedly. :/ which did NOT happen as i mentioned.. SO SOrry this is so complicated and if we could speak about it for more clarity let me know if this is something you can or are willing to help with? :) and THANK YOU again for ANY help ~Robin Martin***-***-****
Expert:  Barrister replied 28 days ago.

Ok, thank you for that information... But I still need to know whether you wrote into your sales contract for your house if it was contingent on you closing on the new townhome?

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And if I understand correctly, the buyer is not ready to close on your house either?

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Have you been agreeing to extend the contract in writing for the sale of your home?

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Do you have the language "Time Is Of The Essence" in your sales contract?

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And just to be clear, I am only allowed to answer questions and provide legal information. I can't represent customers from the site under my agreement with JustAnswer. If you need legal representation, you would need to contact a local real estate attorney to represent you in an attorney/client relationship.

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thanks

Barrister

Customer: replied 28 days ago.
thanks so much! i do not see the contigency upon closing on the new townhome..... yes it says time of of the essence.... and yes we singed w/ the buyer to extend the contract to 15th.... but only have signed contrct w/ townhome that states closing date to oct 31 i just noticed :/
Customer: replied 28 days ago.
here is the buyer agreement :?
Customer: replied 28 days ago.
in the purchse contract of new town home, it says contingent upon currrent home selling.. and yes.. they never sent a new contract so technically we are not under contract since the 31 is passed?.... so how can that alone get us out of the buyers contract or can it?
Expert:  Barrister replied 28 days ago.

Ok, if your sales contract says "time is of the essence" then that means that after a deadline passes to close, you can legally cancel the entire sale. That is a "drop dead" date.

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So if the buyer can't close by the 15th, you can pull out and terminate the contract.

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As for getting out of the townhouse purchase, since it says that it is contingent on the sale, then if you terminate the contract for sale on the 15th if the buyer can't perform, then the whole thing falls apart and everybody walks away back in the same position they were in before you met.

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thanks

Barrister

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